October 26, 2010
South Korea faces higher-priced Australian beef for October
South Korean importers reported difficult Australian beef trade in October, given Australia's increasing offer prices on the back of high Australian dollar and tight beef supplies.
Australian beef exports to South Korea for the first 11 days of October totalled 2,641 tonnes swt - with chilled beef making up 35% of shipments, according to the Department of Agriculture, Fisheries, and Forestry (DAFF).
However, Korean buyers will need to secure sufficient beef stock levels in the next few months to prepare for Lunar Year demand, which falls on February 3, 2011.
While Chuseok is Korea's annual peak demand period for beef, Lunar Year remains the second major demand period for Australian beef in Korea.
Low stock levels of Australian beef in Korea (especially chilled product) after reported strong Chuseok sales and recent deceleration of Korean beef imports has resulted in firm prices for the majority of Australian beef cuts in the Korean wholesale market.
